1099-R state pension & RMD

Feb 28, 2014 2 Replies
D

I received a 1099-R for my state of FL retirement payment. TurboTax asked if this plan is qualified or nonqualified. I said qualified. Next TurboTax page says because I am over 70 1/2, I need to take a required minimum distribution from this plan. Then TT asks, Was this withdrawal an RMD for 2013, giving options yes, some or all was RMD, or "No, none of this withdrawal was an RMD. (This is not common.)"



I did not think such regular state-determined payments were RMDs, but I did not want to say "No" because all state retirees are in same boat so such withdrawals would be "common."



Are payments from state retirement plans considered RMDs?



Thanks. Don


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D

Answering my own question. This from TurboTax discussion group:

ALL qualified pensions are automatically RMD's after age 70 1/2. If you receive periodic payments, then your payment IS the RMD.

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A

When you receive your payments in the form of an annuity (e.g., distributions from a defined benefit plan) the rules for calculating the required distribution are in a different part of the Internal Revenue Code from those used for an IRA or Defined Contribution Plan (e.g.,

401K). As the plan administrator will utilize the governing rules to compute the payments over your life or your life and your beneficiary, the payments represent your required distribution.
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